You missed the maturity date. The next 120 days matter most.

What to have in hand on the maturity date

The agreement asks for a written and fully executed refinancing commitment or purchase and sale agreement, delivered to the servicer, providing for the refinancing or sale to occur within 120 days after the balloon was due. A term sheet or a letter of interest is not that document. A lender's signed commitment is.

1. Day 0: Maturity: the balloon is due. If you have delivered a signed refinancing commitment or a signed sale contract that closes within 120 days, the loan can stay with the master servicer while it closes. Without one, the missed balloon is a Servicing Transfer Event at once. (PSA 1.01, "Servicing Transfer Event" (i))
2. Day 1: Reported past maturity. The filing shows payment status code 4 (matured, still paying) or 5 (matured, not paying). (Schedule AL, paymentStatusLoanCode)
3. Day 90: Appraisal Reduction Event (day 120 if a deal is pending). Ninety days after the missed balloon, an appraisal is triggered, unless a refinancing or sale is expected within 120 days of maturity, in which case it waits until day 120. (PSA 1.01, "Appraisal Reduction Event" (vi))
4. Day 120: The 120-day line. If the loan went to the special servicer only for the missed balloon or a missed payment, and it is refinanced or repaid in full within 120 days of maturity, the special servicer takes no liquidation fee and no workout fee on it. After day 120 the refi or sale deadline is gone and the loan transfers if it has not already. (PSA 1.01, "Liquidation Fee" proviso (e); "Workout Fee Rate" (ii); "Servicing Transfer Event" (i))

If there is no commitment by maturity

The loan goes to the special servicer immediately. From there the realistic paths are a short extension negotiated as a modification, a refinance that pays the loan in full, a sale, a discounted payoff, or a foreclosure. Extensions and other changes are major decisions that the junior bondholders' representative can block while it holds control. What a servicer is allowed to change.

Start before the date, not after it

Many conduit loans open to prepayment at par a few months before maturity. In BMO 2026-C15, a conduit deal from August 2026, the open period ran 2 to 7 monthly payments. That window and the 120 days after maturity are the time you have to close a refinance without paying a premium or a special servicer's fee on the balloon. A loan that cannot be refinanced for the full balance needs equity, a partner, or a negotiated paydown, and those take longer to arrange than a plain refinance.

Sources: Pooling and Servicing Agreement, dated as of April 1, 2025 (BANK5 2025-5YR14), section 1.01 definitions of "Servicing Transfer Event", "Appraisal Reduction Event", "Liquidation Fee" and "Workout Fee Rate"; BMO 2026-C15 prospectus, filed August 18, 2026.